Knowledge and understanding of a client's business is absolutely essential in completing an audit.

Question

Quizplus · Accepted Answer

Understanding a client's business is crucial for an auditor to properly assess the risks and potential areas of fraud or error in the financial statements. Without knowing the client's operations, products or services, and industry-specific regulations, an auditor may not be able to gather relevant information to conduct an effective audit.

Knowledge and Understanding of a Client's Business Is Absolutely Essential